NEW YORK, Nov 26 (Reuters) - U.S. Treasury yields rose on Monday, driven by higher U.S. equities and in anticipation of a deluge of new issues coming from this week’s Treasury auctions.

Government bond yields rose across maturities, with the 10-year yield last up 1.6 basis points at 3.07 percent, and the two-year yield up 2.1 basis points at 2.841 percent. As longer-dated yields moved more slowly than those at the short end, the yield curve flattened to an eight-week low of 21.8 basis points.

U.S. stocks opened higher on Monday as optimism of a robust holiday shopping season powered gains in shares of retailers and technology stocks, which bounced back after a brutal sell-off last week. All three major indices were up more than 1 percent at midday.

“That risk-on move is pushing yields higher,” said Michael Cloherty, head of U.S. rates strategy at RBC Capital Markets.

Later on Monday, the U.S. Treasury Department will auction off $39 billion of new two-year notes, an increase in supply by $1 billion from the prior month. The week will see a total of $284 billion auctioned in bills, notes and floating-rate notes. Bond issuance this quarter is projected to set a record of $83 billion after deducting maturing debt.

Just as the Treasury embarks on a record debt sale to pay for President Donald Trump’s tax cuts and spending increases, yields are being pressured as some overseas investors appear to be taking a pass on U.S. debt.

Top foreign holders of Treasuries, like China and Japan, have shrunk their portfolios of U.S. government bonds this year. A recent barometer of participation in Treasury auctions suggests overseas buyers have not been showing up in force, according to Treasury Department data.

Waning uncertainty over the United Kingdom’s deal to exit the euro zone also boosted yields on Monday as investors regained their appetite for risk.

“Looking forward, we will continue to take cues from risk assets,” said Cloherty, both because of the global political uncertainty and the strength of U.S. equities.

EU leaders finally sealed a Brexit deal on Sunday. They said the package agreed upon with Prime Minister Theresa May was the best Britain would get, in a warning to the British Parliament not to reject it. (Reporting by Kate Duguid; Editing by Andrea Ricci and Dan Grebler)